Global Tourism Market Report and Forecast 2024-2032

Global Tourism Market Size

The global tourism market value reached around USD 9.24 trillion in 2023. The market is projected to grow at a CAGR of 4.7% between 2024 and 2032, reaching almost USD 13.96 trillion by 2032.

Global Tourism Market Outlook

• According to the Australian Bureau of Statistics, Australia saw 1,704,730 tourist arrivals, a yearly increase of 444,180.

• UK Music reports that in 2022, music tourism grew to 14.4 million, thus, increasing demand for fireworks at events.

• The U.S. Bureau of Economic Analysis reports a 21% growth in the tourism and travel industry in the US in 2022.

Global Tourism Market Growth

The tourism demand forecast is impacted by many countries like Saudi Arabia, Qatar, and China that are attempting to enhance their international standing by creating sustainable infrastructure for hosting international sporting events. As a part of its $2.7 billion investment, Saudi Arabia is planning to expand its existing facilities for seating in the Prince Faisal Bin Ahad Stadium to host the Asian Football Confederation’s Asian Cup in 2027. Since sports tourism accounts for 10% of the world’s overall tourism expenditure, Saudi Arabia is expected to solidify its position as a key region in the Middle East and Africa for sports enthusiasts, thereby driving the growth of the tourism industry.

As per the Travel and Tourism Development Index (2024) released by the World Economic Forum, iconic landmarks, delectable cuisines, and renowned culture of countries like the USA, Spain and Japan made them leaders of the global tourism landscape. In 2023, the USA, Spain, and Japan cumulatively attracted over 180 million travellers. With the number of people visiting American Hollywood, Spain’s various beaches and Japan’s iconic temples increasing, the market is expected to witness significant growth.

As per the tourism industry analysis, sustainability is expected to play a crucial role in shaping the tourism landscape in the forecast period. Stakeholders in the market are attempting to make tourism activities more resilient, eco-friendly, inclusive, and carbon-neutral. Moreover, the development of sustainable accommodations and green transportation solutions is expected to further revolutionise the market in the coming years.

Global Tourism Industry Outlook

As per the World Tourism Organization, the growth of the tourism market is expected to rebound. By 2024, the Middle East is expected to see a remarkable 36% increase in tourist arrivals compared to 2019, reflecting strong growth in the sector. Asia and the Pacific are also set to experience a robust recovery, with arrivals anticipated to be up by 18% in 2024, following consistent improvements in previous years. Africa and Europe are projected to achieve growth, with a 5% and 2% increase respectively by 2024, boosting the tourism industry revenue.

Further, according to UNWTO, Paris saw a 4% increase in visitors, attracting 15.5 million travellers. Hong Kong experienced a remarkable 2495% surge, with 14.7 million visitors. Bangkok's arrivals grew by 142% to 12.2 million. New York City saw a 24% rise, reaching 11.7 million international tourists. Cancún and Mecca each welcomed 10.8 million visitors, with growth rates of 13% and 124%, respectively. These trends suggest a strong recovery in global tourism, with significant increases in international arrivals in various cities, thus boosting the tourism market revenue.

The tourism market dynamics and trends are shaped by the growing number of international tourists. According to industry reports, in 2023, several major cities saw substantial growth in international arrivals, indicating a robust rebound in global tourism. Istanbul led with 20.2 million trips, a 26% increase from the previous year. London had 18.8 million arrivals, a 17% rise, while Dubai welcomed 16.8 million visitors, up 18%. Antalya experienced a notable 29% increase, reaching 16.5 million international trips.

The global tourism market offers a wide range of destinations, appealing to diverse interests such as cultural heritage, natural landscapes, and adventure activities, attracting a large audience.

• Tourism plays a crucial role in the global economy by generating revenue, creating employment opportunities, and supporting infrastructure development, benefiting both local and national economies.

• Advances in travel technology, like online booking, virtual tours, and mobile apps, make travel planning more convenient and accessible, enhancing customer satisfaction and growth of the tourism market.

Tourism demand often varies with the seasons, leading to inconsistent revenue and challenges in resource and staffing management during off-peak times.

• Heavy tourist traffic can strain natural resources and ecosystems, causing pollution, biodiversity loss, and environmental damage, which can negatively impact destinations.

• The tourism market is highly sensitive to global events like political unrest, economic crises, and health emergencies, which can severely disrupt travel plans and market stability.

Rising affluence and improved infrastructure in emerging economies offer significant tourism market opportunities, as more people can afford to travel.

• Increasing awareness and demand for sustainable and eco-friendly travel create opportunities for destinations and businesses to promote responsible tourism practices.

• Innovations in AI, virtual reality, and personalized travel experiences provide new ways to engage travellers, improve satisfaction, and streamline operations.

Political unrest, conflicts, and terrorism can deter tourists and negatively affect tourism in impacted areas, causing substantial revenue losses.

• Environmental changes and extreme weather events can damage tourist destinations, disrupt travel plans, and reduce the attractiveness of certain regions.

• Global health crises, like pandemics, can lead to widespread travel restrictions, decreased consumer confidence, and prolonged downturns in tourism activity.

Key Players in the Global Tourism Market and their Key Initiatives

TUI AG

• TUI AG launched the "Sustainable Tourism Program" focusing on eco-friendly travel experiences and carbon reduction.

• The company expanded its digital services with the "TUI Blue App to improve its position in the tourism industry.

Booking Holdings Inc.

• Booking Holdings Inc. launched a comprehensive program promoting sustainable travel.

• The company implemented advanced AI technologies to offer personalized travel experiences.

Expedia Group Inc.

• Expedia Group Inc. launched a comprehensive sustainability program aimed at promoting eco-friendly travel options.

• Considering the growing tourism market opportunities, the company is enhancing its technology platform with advanced AI features.

Contiki

• Contiki has introduced "Sustainable Travel Experiences," focusing on eco-friendly tours.

• The company launched "Local Immersion Programs to meet the tourism market demand.

G Adventures Inc.

• G Adventures Inc. launched the "Retravel" initiative, encouraging sustainable and responsible travel.

• Partnered with National Geographic to create immersive, culturally rich travel experiences.

Global Tourism Industry Segmentation

“Global Tourism Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Tourism Type

• Domestic Tourism

• International Tourism

Market Breakup by Travel Days

• Less Than 7 Days

• Between 7 – 15 Days

• More Than 15 days

Market Breakup by Travel Purpose

• Business Spending

• Leisure Spending

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Tourism Market Share

Based on region, the market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Over the forecast period, Europe is expected to remain one of the most popular tourist attractions, as countries like Italy and Switzerland emerge as popular travel destinations for international tourists seeking delicious cuisines and mountainous landscapes for leisure travel boosting the demand of the tourism market.

Leading Companies in the Tourism Market

Major market players are expected to expand their product offerings for different consumers and provide cost-effective travel packages.

• TUI AG

• Booking Holdings Inc.

• Expedia Group Inc.

• Despegar.com, Corp.

• Contiki

• Butterfield & Robinson Inc.

• Geographic Expeditions Inc.

• ROW Adventures

• MT Sobek’s

• G Adventures Inc.

Key Highlights of the Report

Tourism Market Report Snapshots

Tourism Market Size

Tourism Market Growth

Tourism Market Share

Tourism Companies